The one-time crypto billionaire Sam Bankman Fried, a renowned donor to American politics, ends his iconic crypto career by stepping down as CEO of FTX exchange and filing for chapter 11 bankruptcy. According to Open Secrets, SBF reportedly spent more than $40 million to fund democrats during the most recent election season.
Bankman bets on politics
Sam Bankman Fried has ended his iconic crypto exchange career by stepping down as CEO of FTX, filing for chapter 11 bankruptcy. According to Open Secrets, SBF reportedly spent more than $40 million to fund democrats during the most recent election season, becoming the second most sophisticated election investor after George Soros.
On November 5th, SBF tweeted, admitting to his fans that he had funded both electoral parties contesting against each other in the name of supporting decentralized finance.
“I was a significant donor in both D and R primaries. Supporting constructive candidates across the aisle to prevent pandemics and bring a bipartisan climate to DC. And working with them to support permissionless finance.”SBF’s tweet read.
Sam’s top lieutenant, Ryan Salame, has been funding Republicans almost as quickly as Steve Schwarzman and Peter Thiel. The total spending of the two men during this election cycle was estimated to settle at around $61.3 million.
However, on voting day, when they may have been monitoring how their bets in the electoral arena were performing, FTX found itself engulfed in a blaze of speculative activities and gigantic withdrawal transactions. Ironically, Sam Bankman’s tweet on granting democrats came just days before the former billionaire stepped down as CEO and filed for FTX’s bankruptcy.
One-time billionaire goes to zero
SBF had a net worth of roughly $38 billion at its peak. According to Bloomberg, SBF’s FTX division is now valued at $1. Sam Bankman Fried’s empire evaporated in thin air in less than a week. In addition to his existing derailment, Bankman’s FTX reportedly lost $1 billion worth of clients’ funds. $10 billion from the exchange was secretly routed by FTX to his trading firm Alameda Research.
Sources stated that a large portion of that amount later disappeared. One source claims that the amount of money lost sits at $1.7 billion. The other reported the deficit to be between $1 and $2 billion.
Bankman’s bite may have been more than he could chew, as serious allegations could potentially put him in jail for a long time. As FTX’s dust settles, more unraveling truths get revealed on the dark side of Bankman and his FTX decisions.